Followers | 679 |
Posts | 140715 |
Boards Moderated | 37 |
Alias Born | 03/10/2004 |
Monday, February 08, 2021 7:25:05 PM
By: Motley Fool | February 8, 2021
• A boom for bitcoin could lead to increased usage of Square's Cash App.
What happened
The price of bitcoin (CRYPTO:BTC) surged to all-time highs early Monday morning, causing stocks like fintech company Square (NYSE:SQ) to rise as well. Square stock rose 8% for the session.
So what
The price of bitcoin is influenced by supply and demand. And demand appears to be growing. This morning, Tesla announced that it bought $1.5 billion in bitcoin tokens during January. Companies like MicroStrategy had done this long before Tesla, but Tesla is a large-cap stock and a member of the S&P 500. Now that this high-profile company is converting some of its balance sheet into bitcoin tokens, it could be a sign other companies will soon follow.
As companies and institutional investors continue to warm to the idea of cryptocurrencies, demand is growing and the price of bitcoin is rising. The increasing value in turn attracts many regular investors, and that's where a company like Square comes in. Through its Cash App, users can easily buy and sell bitcoin tokens.
If the price of bitcoin keeps rising, then it's logical to assume more users could be attracted to the Cash App. The same could be said for PayPal Holdings, which recently started offering bitcoin trading as well. While it didn't rise as much as Square stock today, PayPal stock was still up 4%.
Now what
Square tries not to make money from processing bitcoin transactions, performing the service as close to cost as possible. Therefore, some might think today's move is overdone. After all, even if Square starts processing more bitcoin transactions, where's the financial benefit?
That's a fair point. However, it's hard to quantify how many people might become Cash App users for bitcoin initially, but will then begin to use Square's services for other things. For that reason, I do believe Square could benefit from a crypto boom and it makes sense that the stock was up today.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent SQ News
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Block to Announce First Quarter 2024 Results • Business Wire • 04/04/2024 09:23:00 PM
- Exxon Mobil Forecasts Earnings Decline, Twilio Seeks Board Tenure Changes, and More News • IH Market News • 04/04/2024 11:30:20 AM
- Bitkey commence à expédier les premières unités de son dispositif matériel et ajoute des fonctions de sécurité et de récupération • Business Wire • 03/13/2024 10:10:00 PM
- Afterpay Expands to More In-Demand Categories with New Spring Merchants • Business Wire • 03/13/2024 01:00:00 PM
- Bitkey Starts Shipping First Units of Its Hardware Device, Adds Security and Recovery Features • Business Wire • 03/13/2024 12:27:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 11:04:30 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/04/2024 10:31:45 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 10:11:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 10:08:05 PM
- Uniswap Skyrockets 55% with Incentive Proposal, Avalanche Confronts 4-Hour Shutdown, and More • IH Market News • 02/23/2024 06:26:18 PM
- Goldman Sachs Reconsiders Fed Cuts, LUNR Surges Over 40% in Pre-Market, and More • IH Market News • 02/23/2024 01:03:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 12:06:53 AM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 02/22/2024 09:51:43 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/22/2024 09:42:06 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/22/2024 09:11:06 PM
- Block Announces Fourth Quarter and Full Year 2023 Results • Business Wire • 02/22/2024 09:05:00 PM
- U.S. Futures Surge on Nvidia’s Stellar Performance, Global Markets Respond Positively • IH Market News • 02/22/2024 11:05:39 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 10:40:10 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 10:39:40 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 10:39:04 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 10:38:14 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/20/2024 10:29:28 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/09/2024 09:05:56 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/08/2024 09:10:56 PM
VPR Brands LP Reports Record Annual Financial Performance for Fiscal Year 2023 • VPRB • Apr 19, 2024 11:24 AM
Coinllectibles' Subsidiary, Grand Town Development Limited, Acquires Rare Song Dynasty Ceramics Worth Over USD28million • COSG • Apr 18, 2024 8:03 AM
ILUS Provides Form 10-K Filing Update • ILUS • Apr 17, 2024 9:54 AM
Glucotrack Announces Expansion of Its Continuous Glucose Monitoring Technology to Epidural Glucose Monitoring • GCTK • Apr 17, 2024 8:00 AM
Maybacks Global Entertainment To Fire Up 24 New Stations in Louisiana • AHRO • Apr 16, 2024 1:30 PM
Cannabix Technologies Begins Certification of Contactless Alcohol Breathalyzer, Re-Brands product series to Breath Logix • BLOZF • Apr 16, 2024 8:52 AM